Automotive

Ford likely to cut 7000 jobs

Ford is cutting down 7,000 jobs, or almost around 10% of its salaried staff across the world. This is as part of the cost-cutting effort likely to save 600 million dollars per year.

The company will be starting to notify of cuts, and the terminations will be finished by the end of August. Almost 2,400 of the job cuts are in the region of North America, and 1,500 will be through a voluntary buyout option.

The move is likely to reduce bureaucracy within the company and help in flattening the overall management structure. Another advantage is the cost-cutting, as Jim Hackett, the CEO said in a letter.

These layoffs are similar to the one announced by General Motors (GM) in November. However, the extent of cuts for GM was much deeper. Ford has been laying the job cuts over the past few several months. This decision is part of the large restructuring likely to cost many jobs worldwide. The company promised to spend 11 billion dollars in reshaping the business. The company was hoping to increase sales by c Ford likely to cut 7000 jobs

Ford is cutting down 7,000 jobs, or almost around 10% of its salaried staff across the world. This is as part of the cost-cutting effort likely to save 600 million dollars per year.

The company will be starting to notify of cuts, and the terminations will be finished by the end of August. Almost 2,400 of the job cuts are in the region of North America, and 1,500 will be through a voluntary buyout option.
The move is likely to reduce bureaucracy within the company and help in flattening the overall management structure. Another advantage is the cost-cutting, as Jim Hackett, the CEO said in a letter.

These layoffs are similar to the one announced by General Motors (GM) in November. However, the extent of cuts for GM was much deeper. Ford has been laying the job cuts over the past few several months. This decision is part of the large restructuring likely to cost many jobs worldwide. The company promised to spend 11 billion dollars in reshaping the business. The company was hoping to increase sales by concentrating on electric and autonomous driving technologies.

However, ford is not disclosing how it will be spending 11 billion dollars. Also, what would the actual restructuring involve is also not clear.

Presently the company is shutting down its plants in Russia, Europe, and Brazil. However, these contribute to only I billion USD. The global challenges faced by ford are large. In the local part, the company has reported a maximum in sales and profits. However, abroad the company is still struggling and restructuring needs to be done.

Ford’s struggles

Ford is currently facing pressure to be a profitable company. It is failing to meet the margins of competitors. The reason for this is the growing tariff of commodities like steel and aluminum and similar factors. However, some staff is saying that it is a part of a larger strategy for business growth.

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Michele Shepard

Michele heads the automotive news column as a author. She is hard working and ensures timely delivery of tasks. She in-depth analysis helps us deliver content with great accuracy. She pays keen attention to every small detail. Moreover, she makes sure that the content remains in compliance with set industry standards. Michele is a great performer and her contributions greatly appreciated by the company.

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